During its first year of operations, Connor Company paid $39,000 for direct materials and $19,000 In wages for production workers. Lease payments and utilities on the production facilities amounted to $8,000. General, selling, and administrative expenses were $9,000. The company produced 6,000 units and sold 5,000 units for $16.00 a unit. The average cost to produce one unit is which of the following amounts?

During its first year of operations, Connor Company paid $39,000 for direct materials and $19,000 In wages for production workers. Lease payments and utilities on the production facilities amounted to $8,000. General, selling, and administrative expenses were $9,000. The company produced 6,000 units and sold 5,000 units for $16.00 a unit. The average cost to produce one unit is which of the following amounts?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
During its first year of operations, Silverman Company paid $16,360 for direct materials and $10,300 for production workers' wages. Lease payments and utilities on the production facilities amounted to $9,300 while general, selling, and administrative expenses totaled $4,800. The company produced 6,200 units and sold 3,800 units at a price of $8.30 a unit. What is Silverman's cost of goods sold for the year?
During its first year of operations, Forrest Company paid $30,000 for direct materials and $50,000 in wages for production workers. Lease payments, utility costs, and depreciation on factory equipment totaled $15,000. General, selling, and administrative expenses were $20,000. The average cost to produce one unit was $2.50. How many units were produced during the period?
During its first year of operations, Connor Company paid $26,310 for direct materials and $18,100 In wages for production workers. Lease payments and utilities on the production facilities amounted to $7,100. General, selling, and administrative expenses were $8,100. The company produced 5,100 units and sold 4,100 units for $15.10 a unit. The average cost to produce one unit Is which of the following amounts? Multiple Choice O O O O $10.10 $8.15 $12.56 $11.69
During its first year of operations, Silverman Company paid $14,000 for direct materials and $ 19,000 for production workers' wages. Lease payments and utilities on the production facilities amounted to $17,000 while general, selling, and administrative expenses totaled $8,000. The company produced 5,000 units and sold 3,000 units at a price of $15.00 a unit. What was Silverman's net income for the first year in operation? Multiple Choice $37,000 $12,000 $ 7,000 $28,000
During its first year of operations, Silverman Company paid $9,160 for direct materials and $9,700 for production workers' wages. Lease payments and utilities on the production facilities amounted to $8,700 while general, selling, and administrative expenses totaled $4,200. The company produced 5,300 units and sold 3,200 units at a price of $7.70 a unit. What is Silverman's cost of goods sold for the year? Multiple Choice O $27,560 $13,923 $16,640 $23,060
Example Ltd is a manufacturer. It produced 2,000 units in April. The following cost information is available: Advertising costs: $6,000 per month Depreciation on factory equipment: $3,000 per month Factory supervisor salary: $20,000 per month Metal used in the product: $10 per unit Research and development: $8,000 per month Wages of manufacturing equipment operators: $8 per unit Assume any materials used in production is direct material. What is the total conversion costs for Example Ltd in April? 39,000 36,000 20,000 14,000
brahim Corporation has the following estimated costs for the year:Direct Materials Rs. 20,000 Factory Rent Rs. 10,000 Sales Salaries Rs. 50,000 Factory Depreciation Rs. 5,000 Direct Labor Rs. 25,000 Foreman’s Salary Rs. 20,000 Indirect Material Rs. 4,000 Indirect Labor Rs. 3,000 Ibrahim Corporation estimates that 25,000 labor-hours will be worked during the year. If FOH rate is applied on the basis of direct labor hours, the overhead rate per hour will be:
The ABC company has the following estimated costs for the next year: Direct materials: $15,000 Indirect materials: $5,000 Direct labor: $55,000 Salary of production supervisor: $35,000 Rent on factory equipment: $16,000 Sales commission: $75,000 Advertising expenses: $11,000 It is estimated that 53,000 machine hours and 8,000 direct labor hours will be worked during the next year. What will be the predetermined overhead rate if company applies manufacturing overhead cost to jobs on the basis of direct labor hours. Select one: a. $14 b. $17 C. $7 d. $15 23°C uao
Simplex Company has the following estimated costs for next year: Direct materials $15,000 Direct labor $55,000 Sales commissions $75,000 Salary of production supervisor $35,000 Indirect materials $5,000 Advertising expense $11,000 Rent of factory equipment $16,000 Simplex estimates that 10,000 direct labor and 16,000 machine-hours will be worked during the year. If overhead in applied on the basis of machine hours, the overhead rate per hour will be: